On Thursday, March 6, Minnesota Management and Budget (MMB) released its annual February revenue forecast providing information and an outlook for the state’s financial picture. The latest forecast shows Democrat tax increases lead to a meager $456 million surplus at the end of 2026 and a massive $6 billion deficit by 2029. The forecast numbers do not account for any new spending, meaning that new spending bills passed this legislative session will further increase the deficit down the line.
Senator Rich Draheim (R-Madison Lake) issued the following statement:
“Minnesota’s looming $6 billion budget shortfall is a direct result of the Democrats’ reckless spending and the Walz administration’s fiscal mismanagement. They blew through a multi-billion-dollar surplus by increasing spending by 40%, turning an $18 billion surplus into massive debt while burdening taxpayers with $10 billion in new taxes. Last November, Minnesotans demanded an end to the spending spree. Instead, Democrats ignored them—and now taxpayers are left paying the price for the Democrat deficit.”
Under Democrat administrations, Minnesota’s government budget has nearly doubled from a $39 billion general fund budget in 2014 to $71 billion in 2024. Democrats have also raised taxes by $10 billion, making life more expensive for Minnesotans. The state now has some of the highest individual taxes and the 46th worst state and local tax burden in the nation.
The February forecast will serve as a guide for the Minnesota Legislature in creating the upcoming two-year budget before the constitutionally mandated session deadline on May 19, 2025. Click here to read the full MMB November Budget and Economic Forecast.